Morning Wrap (15.12.2023)

• Indices in the Asia-Pacific region are gaining in moderate sentiments. The Chinese market is up 0.80-1.00%, the SP ASX 200 gains 0.20%, and the Japanese Nikkei 225 is up to 0.90%.

• The People's Bank of China (PBoC) announced that it is keeping the interest rate for 1.45 trillion yuan ($203.97 billion) of one-year medium-term loans (MLF) to some financial institutions at the unchanged level of 2.50% injecting markets with a record amount of funds.

• China is exerting pressure on Taiwan by introducing trade barriers and fighter jets in the Taiwan Strait a month before key elections on the island. Taipei has called on Beijing to stop "political operations." Presidential and parliamentary elections will be held on January 13.

• A package of macroeconomic data from China was moderate. Retail sales in November were lower than expected, while industrial production was above consensus. Detailed data:

  • Unemployment rate 5% (forecast 5%, previously 5.000%)
  • Chinese urban investments year-to-date 2.9% (forecast 3%, previously 2.9%)
  • Retail sales y/y actual 10.1% (forecast 12.5%, previously 7.6%)
  • Industrial production y/y, actual value 6.6% (forecast 5.7%, previously 4.6%)

• Yesterday, at the end of the day, the first Flash PMI data from Australia were published:

  • Australian Composite PMI Index was 47.4 (forecast -, previously 46.2)
  • Services PMI Index, preliminary, actual 47.6 (forecast -, previously 46.0)
  • Manufacturing PMI actual 47.8 (Forecast -, previously 47.7)

• PMI data for Japan was slightly worse than last month:

  • Japanese flash Manufacturing PMI for December at 47.7, down from 48.3 in November.

• Madis Müller, Governor of the Bank of Estonia and a member of the ECB's Governing Council, believes there is no reason to consider an additional interest rate hike by the ECB. However, the banker also does not foresee hikes in the near future.

• Energy commodities are trading at yesterday's closing levels. Oil gains 0.05% around $72 per barrel. Natgas loses -0.05%.

• In the precious metals market, we observe moderate declines. Gold is trading close to yesterday's closing levels but above $2000 per ounce. Silver loses -0.35% to $24.05. Palladium loses the most, down -1.80% to $1085.

• Cryptocurrencies are trading slightly lower. Bitcoin loses -1.00% to $42500, and Ethereum is down -2.50% around $2250. Altcoins lose a bit less, at 0.80%, and the total market capitalization of total 3 is $4630 billion.

The dollar index (USDIDX) continues its declines in unison, breaking through successive support levels. The rebound ahead of the Fed has been negated. Currently, the index is heading towards this year's low near 99.40 points, Source xStation 5